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Oaktree Acquisition Corp. III Life Sciences Unit (OACCU)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$2.09 - $3.01$2.54
Multi-Stage$3.55 - $3.89$3.71
Blended Fair Value$3.13
Current Price$10.51
Upside-70.25%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024
DPS0.00%0.00%0.000.000.000.000.000.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)6.88
(-) Cash Dividends Paid (M)4.25
(=) Cash Retained (M)2.63
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1.380.860.52
Cash Retained (M)2.632.632.63
(-) Cash Required (M)-1.38-0.86-0.52
(=) Excess Retained (M)1.261.772.12
(/) Shares Outstanding (M)23.2423.2423.24
(=) Excess Retained per Share0.050.080.09
LTM Dividend per Share0.180.180.18
(+) Excess Retained per Share0.050.080.09
(=) Adjusted Dividend0.240.260.27
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$2.09$2.54$3.01
Upside / Downside-80.10%-75.83%-71.36%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)6.886.816.746.686.616.546.74
Payout Ratio61.74%67.39%73.05%78.70%84.35%90.00%92.50%
Projected Dividends (M)4.254.594.935.255.575.896.23

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)4.164.214.25
Year 2 PV (M)4.054.144.22
Year 3 PV (M)3.924.054.17
Year 4 PV (M)3.783.934.10
Year 5 PV (M)3.623.814.01
PV of Terminal Value (M)62.8666.1469.55
Equity Value (M)82.4186.2790.29
Shares Outstanding (M)23.2423.2423.24
Fair Value$3.55$3.71$3.89
Upside / Downside-66.26%-64.67%-63.03%

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